Pioneer-Standard Reports Record Sales and Income for the September Quarter
* Sales of $631.3 Million Up 13% * Income of $9.2 Million Up 45% (excluding one-time gain) * EPS of $0.29 Up 32% (excluding one-time gain)
CLEVELAND, Oct. 21 /PRNewswire/ -- Pioneer-Standard Electronics, Inc. (Nasdaq: PIOS - news) today announced record sales for the second quarter of fiscal 2000. In addition, net income was the highest for any second quarter in the Company's history.
Revenues for the quarter ended September 30, 1999 were $631.3 million, a 13 percent increase compared with $559.5 million in the second quarter of fiscal 1999. The Company noted that the increase in sales for the quarter came from both of its segments -- Industrial Electronics and Computer Systems. The Company continues to outperform the industrial electronics and computer systems distribution industry as a whole.
Income from operations for the quarter grew to $9.2 million, a 45 percent increase over $6.3 million in the previous year. Diluted earnings per share of $0.29 increased 32 percent compared with $0.22 in the year-ago quarter. During the second quarter of fiscal 2000, the Company recorded an after-tax gain on the sale of assets of $1.1 million, or $.03 per share. Including the one-time gain, the Company reported second-quarter net income of $10.3 million, or $0.32 per share. The increase in net income for the quarter was due to higher sales and improved operating efficiencies.
``The growth in Internet and telecommunications markets has created increased demand for our computer and industrial electronic business segments,' said James L. Bayman, Pioneer-Standard chairman and chief executive officer. ``We have capitalized on these opportunities by aligning ourselves with the high-growth contract manufacturing market and the technology-driven communications market.'
The Company reported second-quarter operating expenses as a percent of sales of 11.4 percent, compared with 11.9 percent for the same period a year ago. Operating profit for the quarter represented 3.9 percent of sales compared with 3.4 percent last year.
``Our commitment to controlling costs has enabled us to deliver more of our revenues to the bottom line,' Bayman said. ``Sales and operating profit were up substantially over last year. In addition, the semiconductor market is improving, as we saw extended lead times and selective price increases during the quarter.'
Six-Month Results
For the six months ended September 30, 1999, revenues of $1.2 billion increased 9 percent over revenues of $1.1 billion in the first six months of fiscal 1999. First-half net income of $18 million represented an increase of 51 percent compared with $11.9 million for the comparable period last year. Diluted earnings of $0.58 per share for the six months increased 38 percent compared with $0.42 per share last year.
Excluding the one-time gain on sale of assets, income for the first half was $16.9 million, a 42 percent increase over the previous first half. Excluding the gain, diluted earnings per share of $0.55 were a 31 percent increase over last year.
``We had a strong first half of fiscal 2000,' Bayman said. ``The rapid development of Internet-related applications and the rebound in the semiconductor market represent ongoing growth opportunities for the second half. At the same time, we are closely monitoring several notable uncertainties, including the aftermath of the Taiwan earthquake and customer response to Y2K issues.'
About Pioneer-Standard Electronics, Inc.
Pioneer-Standard is an international distributor of electronic components and computer systems, with revenues of $2.3 billion. Pioneer-Standards' Industrial Electronics Division provides a comprehensive offering of semiconductors, power products, and interconnect, passive and electromechanical components. The Company's Computer Systems Division is one of the largest distributors of mid-range computer systems, selling through its distribution arm, KeyLink Systems, and its Corporate Accounts Group. Pioneer- Standard has operations throughout North America, and worldwide distribution to Asia and Europe through its equity investments in World Peace Industrial Co., Ltd., headquartered in Taiwan, and Eurodis Electron PLC, headquartered in the U.K. Additional information about Pioneer and its global operations can be found at www.pios.com .
Portions of this earnings release contain current management expectations, which may constitute forward-looking information. The Company's performance may differ materially from that contemplated by such statements for a variety of reasons, including, but not limited to: competition, vagaries in the computer and semiconductor market, as well as dynamic technology changes with key suppliers, and other risks detailed in the Company's filings with the Securities and Exchange Commission.
PIONEER-STANDARD ELECTRONICS, INC.
SALES AND EARNINGS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Six Months
For the periods ended
September 30, 1999 1998 1999 1998
Net sales $631,322 $559,501 $1,207,295 $1,103,828
Cost of sales 535,104 474,024 1,021,803 931,881
Gross profit on sales 96,218 85,477 185,492 171,947
Operating expenses 71,852 66,364 138,806 134,778
Operating profit 24,366 19,113 46,686 37,169
Other income 1,845 - 1,845 -
Interest expense 6,326 6,465 12,422 13,219
Income before taxes 19,885 12,648 36,109 23,950
Taxes 8,125 4,845 15,181 9,113
Preferred stock
distribution 1,462 1,464 2,921 2,919
Net income $ 10,298 $ 6,339 $ 18,007 $ 11,918
Per share data:
Net Income
-Basic $.39 $.24 $.68 $.45
-Diluted $.32 $.22 $.58 $.42
Dividend .03 .03 .06 .06
Weighted average shares outstanding
-Basic 26,360,601 26,348,554 26,357,687 26,348,554
-Diluted 36,207,912 35,705,123 35,988,684 35,701,579
PIONEER-STANDARD ELECTRONICS, INC.
CONDENSED BALANCE SHEETS
(Dollars in thousands)
September 30 March 31
1999 1999
Assets
Current assets:
Cash $ 39,105 $ 28,898
Accounts receivable 358,076 323,461
Merchandise inventory 358,212 314,362
Other 12,299 10,524
Total current assets 767,692 677,245
Net fixed assets 95,185 90,957
Intangibles & other 192,731 176,267
Total $ 1,055,608 $ 944,469
Liabilities & Shareholders' Equity
Current liabilities:
Accounts payable $ 229,985 $ 161,379
Other 37,541 39,519
Total current liabilities 267,526 200,898
Long-term debt 333,158 313,240
Other long-term liabilities 20,568 15,078
Convertible trust preferred securities 143,750 143,750
Shareholders' equity 290,606 271,503
Total $ 1,055,608 $ 944,469
SOURCE: Pioneer-Standard Electronics, Inc.
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